Presenter: Matt Rahe

C Suite, Data, & KPI’s

• Explaining compliance to your CEO

Explaining to the CEO

• Knowing your audience

• How to think like an executive

• Building a business case

• Sample data

Agenda

• Patient Safety and Compliance

• Financial Health of the Company• Reimbursement Models

• Insurance Landscape

• CMS Reimbursement

• Bad Press and Emergencies

• Patient Expectations

What Keeps Your CEO Up at Night?

“With the increasing popularity of high-deductible health plans and more readily available information on outcomes and prices, healthcare is becoming an industry in which consumers shop for care. This makes it critical for hospitals and health systems to become more competitive to maintain market share.”

“CEOs and CFOs: 10 Things Demanding Your Attention this Year,” Becker’s Hospital Review, January 5, 2016

• Patient Safety

• Compliance

• Customer Service

• Staff Productivity

• Budget

• Asset Life

• Capital Replacements

What Keeps You Awake at Night?

http://www.healthcarecompliance.us/things-to-know-about-healthcare-compliance-

programs.html

What Do You Notice?

Improved Outcomes

Cost Reduction

Patient Experience

Patient Safety

Compliance

Staff Productivity

Customer Service

Budget

Asset Life

Capital Replacements

Think Like an Executive

• Weigh decisions as they relate to the whole business not just you or department

• Keep their priorities in mind

• Use data to support your decisions

• What do you need to be more effective:

• Funding for projects

• A bigger staff

• Replace equipment/systems

• Technology

• Triple AIM APPROACH

http://www.paloalto.va.gov/PALOALTO/features/mobiledevices.asp

Learning the Language

•Industry Publications

•Conferences

•Ask!

It’s a Data Driven World

Data – Your Most Precious Resource

“People talk about data being the new oil, I think it’s going to be like the new water. It’s just a resource that will be core to how we do our business and lead our lives.”

Joel Gurin – founder OpenDataNow.com

Cost Standards

Maintenance Cost/GSF:

• Mean = $5.04

• Best in Class = $1.39

• 90th Percentile = $8.96

Utility Spend/GSF:

• Mean = $3.23

• Best in Class = $1.26

• 90th Percentile = $4.91

• Bi Weekly meetings with leadership

• Developing goals and KPIs

• Track dollar value of the projects planned and executed

• Be proactive and get involved

• Stay ahead of code changes and industry trends

Success Depends on Speaking the Same Language

Maintenance Productivity Data Collected in a CMMS:

• 31% - Response time for work requests

• 39% - Percentage of work orders closed on time

• 38% - Cost per square foot

• 26% - Number of service complaints

• 55% - Maintenance staffing per square foot

• 12% - Percentage of budget spent on breakdowns

• 55% - Corrective backlog and PM completion

Key Performance Indicators

• Talk Solutions, Not Products• Describe the problem you are trying to solve • Describe the results of the proposed solution

• What are the drivers behind the solution?• Create efficiency• Mitigate risk• Drive revenue • Reduce cost

• Include data points specific to your request• Increased instances of failure• Cost overruns • Corrective actions

Build a Business Case

Measure Twice Cut Once

• 67% of respondents

had their requests for

funding denied at

least once due to lack

of justification

• Data to support

funding requests is

critical to approval.

• A bigger staff?

• Funding for projects?

• Replace equipment/systems?• Reduce risk

• Energy savings

What Do You Need to Be More Effective?

• Staffing Recommendations

• Amount of Work (time spent and number of work orders)

• Responsiveness

• Staff Productivity

• Percent of Work Contracted

• Amount Spent on Contracted Work by Category

What Can You Bring to the Table?

What Can You Bring to the Table?

• Capital Replacement

Recommendations

• Asset Inventory – age,

condition, useful life,

availability of spare parts,

work/operational history,

area served/risk

• Total Cost of Ownership

• Costs per Asset

• Safety/Compliance Data• Are we prepared for our

surveys?• Are we vigilant about patient

safety?• Are we getting the most out of

our assets/saving energy?

• Customer Satisfaction Data

What Can You Bring to the Table?

1. Maintenance costs per square foot?

2. Per discharge?

3. Number of work requests?

4. Response time for work requests?

5. Asset Inventory

1. Up to date?

2. Age?

3. Condition?

4. Work history?

5. Risk assessment?

Quiz: Do you know your own numbers?

https://blog.nsbank.com/health-savings-accounts-what-how-and-why/

Maintenance cost per square foot?

$5.04

Benchmarking 2.0: Healthcare Facility Management Report, IFMA 2013

Per discharge?

$291.47

Benchmarking 2.0: Healthcare Facility Management Report, IFMA 2013

Quiz: Do you know your own numbers?

https://blog.nsbank.com/health-savings-accounts-what-how-and-why/

Only 26% were tracking number of service complaints.*

Only 12% were tracking percentage of budget spent on “breakdown (unplanned) maintenance.”*

Only 26% were tracking “man hour” productivity.*

*Source: Benchmarking 2.0: Healthcare Facility Management Report, IFMA 2013

Where Do I Get the Data?

And you can’t measure what you can’t capture…

You need:

• Work Request Management

• Planned Maintenance (specific to HC compliance)

• Asset Management (specific to HC compliance)

• Environment of Care Rounding

• QA and Customer Surveys

• Analytics/Reporting (specific to HC compliance)

• System-Level Benchmarking and Reporting

You Can’t Manage What You Can’t Measure

Report and Analyze: Repair vs Replace

Report and Analyze: Productivity and Responsiveness

Report and Analyze: EOC Trends

Report and Analyze: Site Comparisons

• Aristotle – 384 BC

• Student of Plato – founder of the study of logic

• The final cause (telos) is its purpose, or that for the sake of which a thing exists or is done, including both purposeful and instrumental actions and activities. The final cause is the purpose or function that something is supposed to serve. This covers modern ideas of motivating causes, such as volition, need, desire, ethics, or spiritual beliefs.

TELOS

Meaning of Work

http://www.npr.org/programs/ted-radio-hour/443411154/the-meaning-of-work

• Mission• ABC Health System is committed to improving the health and well-being of

our community by providing outstanding and compassionate care to all.

• Vision• ABC Health System will be the provider of choice and the preferred partner

for quality healthcare and community health by:• Collaborating with physicians, employees, volunteers and others to engage,

educate and guide our community to take charge of their health and well-being

• Transforming patient care delivery through high quality, coordinated services for the best value.

• Ensuring we are the best minds and biggest hearts.

Mission Statement

• Our Mission• To deliver compassionate, quality care that serves to promote the region’s health

• Our Vision• ABC Health System will be the trusted leader in providing exceptional care for

those we are privileged to serve.

• We Value:• Safety as a guiding principle• Compassion, dignity and respect for all people• Trust and accountability in all of our locations• Learning for life• Innovation in our approach• Teamwork and collaboration across boundaries• Community partners in health

Mission Statement

• Mission• To improve the health and well-being of eastern North Carolina

• Our Values• Safety – Achieving zero harm to patients, visitors, families, and staff

• Provide an environment of safety

• Anticipate and prevent potential harm

• Follow safety habits and best practices

• OUR MISSION• We empower our clients and our people, combining innovative

technology with operational insight to transform the places we learn, live, heal, work, and play.

• We don’t cure cancer, we don’t heal sick people or save lives

• BUT

• We have a unique opportunity

• We support the people who fight this fight

Our TELOS

Sources

• “5 Strategic Advantages of Improved Facility Management in Healthcare,” Becker’s Hospital CFO, February 20, 2015

• “40 Things to Know About Healthcare Costs,” Becker’s Hospital CFO, January 13, 2016

• Benchmarking 2.0: Healthcare Facility Management Report, IFMA 2013

• “CEOs and CFOs: 10 Things Demanding Your Attention this Year,” Becker’s Hospital Review, January 5, 2016

• “Dan Beckham: The Most Important Characteristic in a CEO?: Strategic Muscle,” Hospitals and Health Networks, February 16, 2016

• “Hospital CFOs’ Top Concerns for 2016,” Becker’s Hospital CFO, December 8, 2015

• “How Your Hospital Can Tailor a Value-Based Strategy,” Hospitals and Health Networks, May 12, 2016

• “Smart Money: Making the Case for Hospital Infrastructure Funding,” Health Facilities Management, January 3, 2014

• “Stemming FM Shortage: Industry Leaders Discuss What Makes Field Great,” Facility Care

Questions?